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Merger control in differentiated product industries
Date Issued
2006
Date Available
2008-05-15T14:27:51Z
Abstract
Given that brands (products) are location specific in terms of coverage of retail stores, we allow consumers to have preferences over location and products to carry distribution costs, alongside preferences and costs over other observable and unobservable product characteristics. We embed these considerations into Berry, Levinsohn and Pakes (1995) to jointly estimate demand and cost parameters for brands (products) in Retail Carbonated Soft Drinks. Allowing for location has a very significant impact on estimated primitives and the predictive power of the structural model. As a counterfactual exercise we show the effects on welfare of an equilibrium
that results from a change in the distribution of consumer taste for location.
Type of Material
Book Chapter
Publisher
MIT Press Journals - Massachusets Institute
Copyright (Published Version)
Massachusetts Institute of Technology Press 2006
Subject – LCSH
Consumers' preferences
Product differentiation
Store location
Language
English
Status of Item
Peer reviewed
Part of
Choi, Jay Pil (Ed.). Recent Developments in Antitrust: Theory and Evidence.
ISBN
0262033569
This item is made available under a Creative Commons License
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